1. What is Percentage Increase?

Percentage increase measures how much a value has grown relative to its original amount, expressed as a percentage. In pay terms, it shows the relative growth from an original salary to a new salary.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Amount — The current or increased pay amount
• Original Amount — The starting pay amount

Explanation: The formula calculates the difference between the two amounts, divides by the original to get the relative change, then converts to a percentage by multiplying by 100.

3. Importance of Calculating Pay Increases

Details: Understanding pay increases helps employees evaluate raises, compare job offers, and track career progression. For employers, it assists in budgeting and compensation planning.

4. Using the Calculator

Tips: Enter the original pay amount and the new pay amount in dollars. The calculator will show both the percentage increase and the actual dollar amount increase.

5. Frequently Asked Questions (FAQ)

Q1: How is this different from percentage difference?
A: Percentage increase is always relative to the original amount, while percentage difference compares two numbers symmetrically.

Q2: What if my pay decreased?
A: The calculator will show a negative percentage, indicating a decrease rather than an increase.

Q3: Should I use gross or net pay?
A: Typically use gross pay (before taxes) for comparing salary increases, as net pay can vary based on many factors.

Q4: How does this work for hourly wages?
A: The calculation works the same way whether you're comparing annual salaries or hourly wage rates.

Q5: What's considered a good pay increase?
A: Typical annual raises range 2-5%, while promotions or job changes may bring 10-20% or more increases.